Succession planning for farmers in Western Australia is one of the biggest and most personal challenges that farming families face. It’s not just about finances or legal documents. Your farm’s future impacts your family and your legacy, which means that your succession planning process involves having some tough conversations. At the heart of it all lies a difficult question: How do you divide the farm fairly when fairness doesn’t always mean equal shares? 

If you’ve ever wondered how to balance family harmony with long-term farm viability, you’re not alone, and you’re definitely not the first. Across Australia, more farming families are starting to think seriously about succession planning, and for good reason.

Early Planning for Farm Asset Distribution

A recent Rabobank survey found that 69% of Australian farmers are actively preparing to hand the reins to the next generation. For larger operators, 87% are already working on their succession plan. In Western Australia, farming and financial professionals are encouraging early planning to ensure smooth transitions and strong family relationships.

Succession is a process, not a single decision. And the earlier you start having these conversations, the easier it is to ensure everyone feels included, heard and valued throughout the process.

Fairness vs. Equality

We often hear the phrase “split everything equally”, but when it comes to farm inheritance, that idea can get complicated. A truly fair outcome might mean different things for different people, especially when some family members are actively working on the farm while others have chosen different paths.

According to Rabobank’s research, only 5% of families they worked with achieved an equal inheritance for all children. Instead, most aimed to keep the farm intact and operational, which sometimes meant compensating off-farm heirs with other assets.

Key challenges include:

• On-farm vs. off-farm heirs: Should those working on the farm receive a greater share? Should off-farm siblings be bought out or gifted other assets?
   

• Farm fragmentation: Dividing the land equally can make it harder to run a viable business. This is where tools like family trusts or company structures can play a role.

As one Farm Weekly article noted, overlooking these details can lead to tension, confusion or worse, a fractured family.

To avoid adding more stress, frustration and potential for conflict, you can start mapping out your succession plan now. If this is the first time you’ve considered your farm’s succession plan, start by raising the topic of your farm’s future with all family members. It’s a simple but vital step to show that you care about communicating your plans and creating a more harmonious farm ownership transition.

Family Dynamics and Unspoken Expectations

One of the hardest parts of farm succession planning isn’t crunching numbers. It’s managing emotions.

Discussions can quickly become heated when people feel overlooked or unsure of what’s happening behind closed doors. It’s not uncommon for off-farm family members to feel like they’ve been left out of the loop, especially if plans are made without their input.

That’s why including all family members in conversations early on is so important. It’s not about getting agreement on every detail but about creating transparency, managing expectations, and avoiding nasty surprises down the track.

Without a clear plan, assets may be distributed according to intestacy laws, which rarely reflect the values or long-term vision of the family or the farm.

How to Discuss Fair Farm Inheritance

Succession planning doesn’t have to be an awkward, once-in-a-decade chat. Many families have found success by making it a regular conversation. Whether it’s an annual meeting or an informal catch-up over a cuppa.

• Talk early and often: Starting the conversation before a crisis hits gives everyone time to consider their future.
   

• Bridge the generational gap: Different generations often have different visions for the farm, and both need to be heard.
   

• Call in the pros: Accountants, legal advisors, and succession specialists can bring clarity, offer frameworks, and help defuse tension.

As highlighted in a GroundCover article, bringing in a neutral professional can help families move past emotional roadblocks and focus on practical, workable solutions. Without the same emotional attachment to the outcomes as family members, professionals can ask the tough questions, offer fresh perspectives, and ensure every voice is heard. This support is often vital for finding a path forward that feels fair for everyone.

Don’t Wait Until It’s Urgent

With land values rising across Western Australia and farming operations becoming more complex, putting off succession planning can have serious consequences. It’s not about having all the answers right now, it’s about starting the conversation.

Fair farm distribution isn’t always equal. But with open conversations, careful planning, and the right support, your family can create a plan that works. A succession plan that protects the farm and respects the people behind it.

Need help getting started? At Smith Shearer, we work with small business owners and farming families in the Esperance region and across Western Australia. Our big-picture approach to business advisory is balanced with a commitment to building genuine, long-lasting partnerships with farming families and small businesses that span many generations.

If you would like to  to help take care of your farm’s future, we invite you to contact us on (08) 9071 2173 or at admin@smithshearer.com.au to organising an meeting with our Director Gavin Smith. As a CPA specialising in farm succession planning, Gavin is dedicated to helping farming families develop sustainable businesses that will support generations to come. His expertise focuses on guiding agricultural families through complex transition processes, ensuring their legacy and financial stability continues for future generations.

Don't wait to secure your business's continuity. Start your succession planning today to create a prosperous and harmonious future for you and the new owners. The future of your farm and your family is worth it.